Aveo says Brookfield negotiations continue

Company News

by Anna Napoli

Operator and manager of retirement communities, Aveo Group (ASX:AOG) has today announced commercial negotiations have continued between Aveo and the preferred bidder, Brookfield Property regarding a Scheme of Arrangement for a whole-of-company transaction.

In response to price speculation Aveo says that the indicative cash offer price currently under discussion with Brookfield is $2.195 cash for each Aveo stapled security.

Aveo says the indicative offer price would be reduced by the value of any distributions subsequent to entry into a definitive agreement and that there is no certainty that definitive agreements will be entered into at the indicative price (or at all), that the indicative proposal will result in an acceptable offer for Aveo securityholders or that a transaction will be implemented.

Its been a challenging period for Aveo with a slump in its full-year profit on the back of deteriorating residential property market conditions across Australia and uncertainty around future retirement sales and settlement levels.

Shares in Aveo Group (ASX:AOG) are trading 2.3 per cent lower at $1.98.